Before Any Internal Control Procedure Is Initiated,which of the Following

question 14

Multiple Choice

Before any internal control procedure is initiated,which of the following questions must be primarily addressed by a company?

• A) Will this put an end to theft?
• B) Is this the best security money can buy?
• C) How much benefit will be derived from the cost of the procedure?
• D) Will this prevent accounting errors?

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Definitions:

Consumption

The expenditure by individuals on durable goods, nondurable goods, and services; represented by C.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in its price.

Quantity Demanded

The sum total of a particular good or service that individuals are inclined and financially able to purchase at a given price.

Decrease

A reduction in size, number, or amount.